Hong Kong Stocks Hit 2-Year High

July 24, 2017

NewsStandOnline.Net (24-July-2017): Hong Kong equities climbed to a two-year high amid speculation mainland investors are buying the city’s stocks to escape a small-cap selloff onshore. Gambling shares were among the biggest gainers on the gauge.

The Hang Seng Index rose 0.5% as of 08:42. Macau casino operators Galaxy Entertainment and Sands China rose at least 1.9% as analysts noted Chinese capital controls haven’t had a measurable impact on the gambling enclave. Onshore, the ChiNext Index of mainly small-cap companies fell 0.7% to extend this month’s drop to 7.7%.

Inflows from the mainland have helped Hong Kong’s benchmark equity gauge climb 22% this year to outperform most global peers. Onshore shares have largely been left behind amid concerns about rising funding costs, corporate governance issues, liquidity pressures and tougher regulatory oversight.

Hong Kong Stocks Hit 2-Year High

Chinese investors have bought about 35 billion yuan worth of Hong Kong stocks in July as of Friday, surpassing June’s total monthly net purchases according to analysts.

“Mainland investors are buying Hong Kong stocks to diversify their portfolios and hedge risks, thanks to the weak performance of mainland equities, especially the ones listed in Shenzhen,” said Banny Lam, managing director and head of research at CEB International Investment.

The ChiNext, cowed by an official battle against speculators, is on the verge of becoming cheaper than the Nasdaq Composite Index for the first time on record. Its valuation based on reported earnings is now at 36, compared with 34.3 for the Nasdaq, leaving the narrowest gap since the Chinese board started in 2010.

Cathay To Buy DHL Stake In Air Hong Kong

July 10, 2017

NewsStandOnline.Net (10-July-2017): Cathay Pacific is to buy the 40% stake held in freighter carrier Air Hong Kong (AHK) by joint venture partner DHL, the German-owned global logistics and express parcels operator.

Cathay Pacific currently owns 60% of the AHK stock.  In a Hong Kong Stock Exchange filing, Cathay Pacific and DHL confirmed that they have entered into a non-binding memorandum of Understanding that will see AHK and DHL enter into a sale and leaseback transaction for the freighter assets.

The statement said that eight Airbus A300-600F freighter aircraft and associated equipment will be sold by AHK to DHL under the transaction.

As part of the deal, AHK and DHL will enter into the block space agreement. Under the old block space agreement, AHK sells space to DHL on an agreed network of overnight freight routes.

The announcement stated: “It is contemplated that the above transactions will take effect on and from the expiry on 31st December 2018 of the Joint Venture Agreement and the Old Block Space Agreement.”

It added: “Under the Block Space Agreement, it is contemplated that AHK will operate an agreed freighter network to destinations in Asia for DHL and will receive agreed service fees and reimbursement of operating expenses.”

Cathay To Buy DHL Stake In Air Hong Kong

On its website, Air Hong Kong states that it is “the only dedicated freighter airline based in Hong Kong”.

In October 2002, Cathay Pacific entered into a business partnership with DHL Express to develop the express freight network in Asia. Air Hong Kong now serves Bangkok, Penang, Singapore, Taipei, Narita, Kansai, Nagoya, Seoul, Shanghai, Beijing and Manila.

Air Hong Kong was the launch customer for eight Airbus A300-600Fs which entered into service between September 2004 and July 2006.

In May 2011, AHK received a capacity boost by dry-leasing three Boeing 747-400 Boeing Converted Freighter aircraft.  The AHK website states: “DHL Express is our major customer and the bulk of the cargo is express parcels. The remaining cargo is general freight.

“Air Hong Kong operations benefit businesses both in Hong Kong and around Asia by offering superior services via the Hong Kong hub and contributes to making Hong Kong the leading air cargo hub and logistics centre in Asia.”

Police Find Drugs In Car Abandoned By Driver

May 26, 2017

NewsStandOnline.Net (26-May-2017): Police found drugs under the carpet of a Lexus IS300 after the car crashed into a police motorcycle and a light goods vehicle in Sham Shui Po yesterday.

The male driver of the Lexus fled. He was last seen going into the back alley of a restaurant, news website hk01.com reports.

The drugs were identified as methamphetamine worth over HK$30,000, police said. Police also found two different license plates from the trunk.

The silver sports car hit a police motorcycle on Camp Street at around 2 p.m. The driver ignored the police officer’s request to stop and drove away at high speed on Castle Peak Road toward Mong Kok.

Police Find Drugs In Car Abandoned By Driver

The driver took Tai Po Road and turned left to Pei Ho Street, having disobeyed two red traffic lights, Headline Daily reports.

The driver of the light goods vehicle, who delivers bread for a living, said it was the second time his vechicle was hit in recent months.

The Lexus driver was observed cutting lanes on Castle Peak Road. A motocycle policeman took off after him and a high-speed chase ensued for about 500 meters before the sports car clipped the light goods vehice.

Police are looking for the driver, who was believed to be alone in the car during the incident.

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